Cat bond sponsors tempt investors with diversified perils and geographies
Innovative structures seek to break dominance of US wind peril over ILS market
A new wave of more diversified insurance-linked securities (ILS) is expected in the wake of the world's first cat bond to covering exclusively storm surge risk.
ILS investment managers and dealers predict that targeted cat bonds providing cover for specific perils and geographic regions will become increasingly popular as investors look to diversify their portfolios.
This comes after the MetroCat Re cat bond, placed on July 31, secured $200 million of protection from storm surge risk in New York
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